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GM Channel Stuffing Surges To All Time Record
In the past two months, everyone has been scratching their heads just how it is possible that the US manufacturing base continues to chug along at pre-recession levels even as the world all around America burns? Today, GM may have given the answer, courtesy of its monthly disclosure of car sales which at the top line is completely irrelevant as the funding for these purchases comes almost entirely from subprime loans handed out by the government to NINJAs. What is interesting is the little blurb in every monthly report discussing the amount of dealer inventory, a topic well-known to frequent readers of Zero Hedge which has discussed GM's pervasive channel stuffing in the past, and which subsequently went quite mainstream. So how does November channel stuffing stack up? As the chart below shows, at 623,666 cars, it is an all time absolute record, and represents about 3.5 times the total GM vehicles sold in November! It is also a 31k increase in the past month, and 85k cars more in inventory than in July. Because when economic growth at all costs is needed to demonstrate just how viable America is, and a semi-nationalized car marker is one of the only conduits to "generate" economic growth, it does not matter if the end product is actually demanded or will simply corrode and rust in some dealer showroom in perpetuity. After all it is the act of building the car that matters for various monthly PMI, CMI, regional Fed and GDP purposes. Pretty much exactly like in China's goal seeked "economy." So the next time someone asks just how is it that the miraculous US decoupling continues, please point them to this chart.
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fuck GM and the rest, I want one of these
http://www.youtube.com/watch?v=h4arnATc04U
That was awesome. Love to know how fast he was moving. He stayed in formation with the fighter jets so i know it was pretty fast.
Is it a free a RIM Playbook with every Volt or the other way around?
I call this class of 'car' not zero emissions (ZEV) but high upstream emissions (HUEV)
Long term outcome of supply-side economics? Massive debt, massive overcapacity, mass unemployment, deflating median incomes, offshored jobs and industries. Solution? Bail out the cronies, increase national debt further, accounting gimmickry, channel-stuffing, and other forms of trickery
Sounds eerily like China's ghost cities
How long before they file for bankruptcy this time? Am so sick of all this shit.
If there is anyone still around who supports Obama I have news for you. To quantify, first, as an initiative G.W. Bush pushed through $15 billion for AIDS. For world AIDS day Obama does $50 million.
Jokes on you libtards.
Does GM still manufacture anything in US???
It's not that bad really. It's like when the store has shelves full of food and some goes bad so we throw it out but if the shelves weren't full people would complain of poor selection. Maybe I want white bread and not whole wheat. the leftover is thrown out. Left over cars can be recycled. Another win win.
Measuring the economy by GM's report is like judging the economy by Warren Buffet's gross income. We've all seen what happens with all of that dealer inventory is still sitting in dealer lots, after the end of the model year. The numbers are not nearly as good, then.
http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/
Just saw on PBS news hour that GM sales were up 7% MOM but Chryser sales were up a whopping 45%!Do you have a dealer inventory for them?
Chysler started from a low number and I think they actually sell their cars. Except the Fiats, people in America don't like Fiats unless it's a Ferrari.
Unless its currency.
The new envelope stuffing scam.
GM's Channel Stuffing at best
Big Bill Hell's
Let's assume that Government Motors is doing fucking great and totally swallow what the permabulls are shoving down our throats. Okay... So when do we get our money back?
Tyler....
Stay away from grassy knolls,and G M parking lots...
I'm renting out my driveway to the local GM dealer. He wants me to build a second deck. :D
Thinking about getting back to the future with a renewable energy source vehicle such as the DeLorean which runs on coke…
Kool-Aid Motors
Has AmeriCredit changed their business model in the last ten years? It used to be common knowledge that AmeriCredit would make car loans to anyone who had the cash for a down payment and the first month's installment payment. Then, AmeriCredit would repossess the car at the earliest opportunity and repeat the process with the next sucker!
GM buying AmeriCredit is analogous to BAC buying Countrywide. If GM and BAC had any sense, they would have shot dead the management of AmeriCredit and Countrywide before purchasing those companies!
Dealerships are buying the vehicles directly from GM on their own books, right? So, GM will book profit when dealers choose to restock their inventories? And this is a decision by the (franchise-driven) dealership network, not GM, yes? What am I missing?
A loaded dealer is NOT a loyal dealer!
I don´t think that you should exaggerate GM´s current dealer inventory. Take a look at the figures regarding days supply (number of days needed to sell all vehicles in inventory) below, for instance.
DEALER INVENTORY, Nov 1, 2011:
GM 82 days
Ford 70 days
Chrysler 68 days
DEALER INVENTORY, Nov 1, 2007:
GM 79 days
Ford 80 days
Chrysler 84 days
This is exactly what happens when you have politicians running the economy. They will help/crony one business on the expense of others to keep people employed so the GDP numbers look great; well at least until election. The government should be there just to regulate; to monitor; to make things "fair"; and to enforce the rules. It shouldn't be in financing (i.e. Fannie Mae, FrediMac, HUD, GM Financing, ..etc)? It should not be in industries like car manufacturing i.e. GM? It should make the playing field leveled, and most importantly it SHOULD let the market discovers the price. Bailing out banks, and companies gets in the way of creative destruction; gets in the way of nature (survival of the fittest and most able to withstand shocks). And you wonder why we have 2% GDP in the 3rd Quarter!! Wait it will be revised soon down!!! And Downwards!